As share repurchase programs gain popularity with Real Estate Investment Trusts (REIT’s) across the country, two Chester County based companies, Liberty Property Trust and Brandywine Realty Trust have both announced that they are looking at a buy-back of outstanding shares.

The reasoning behind this latest strategy is that many analysts and the companies themselves, feel that there is a significant disconnect between the actual value of their real estate portfolios and the level at which the shares are trading. This means that they can effectively repurchase their investments at a discount, increasing their long-term performance potential.

As a result Malvern based Liberty Property Trust’s board, has just finalized a proposal to invest $250 million in repurchasing some of its outstanding common shares, which will take effect on August 6, 2017. This is not the first time that Liberty has offered to buy back its shares, but last time the authorization expired before it could be successfully completed, requiring the Board to revisit the issue and issue a new mandate.

Despite the latest decision, the share buyback program is not set in stone as Liberty has the discretion to cancel or amend it at any time, and it also does not specify the number of shares to be repurchased or require the use of the entire $250 million budget.

Brandywine Realty Trust is making a similar move but on a smaller scale, as its Board has only authorized a buyback of $100 million, using the cash it has available to fill the purchase orders when it feels the timing is right.

Both companies stocks have fluctuated over the last year with Liberty’s shares trading between $16.02 and $37.10 whereas Brandywine’s stock has been less volatile, trading between $13.15 and $17.13.